Shares of Insmed (NASDAQ: INSM) spiked nearly 5 percent higher in mid-day trade Wednesday afternoon following some bullish comments from Piper Jaffray's Dr. Joshua Schimmer. The stock is now up more than 3 percent to around $14.49.

Schimmer boosted his price target on Insmed shares by about 13 percent from $45 to $51. The analyst maintains an Overweight rating on Insmed.

Schimmer cited the company's overall long-term strategy and tax structure, as well as upcoming opportunities for Arikayce in the Japanese market. The Piper analyst is optimistic about Insmed's current initiative to explore avenues to shift intellectual property to a lower tax region.

Amid concerns a potentially brief Phase 3 trial will be needed in order to receive FDA approval for Arikayce in nontuberculous mycobacterial, Schimmer believes new opportunities for Insmed will more than offset conservative estimates.

Based on the price of Insmed shares Wednesday afternoon, Schimmer's new price target implies potential upside of a jaw-dropping 250 percent.